# Opening a cigar store



## bama (Jan 24, 2007)

Hey, everyone. I know a lot of you have cigar stores or at least know the ins and outs of starting a cigar shop. I am very interested in starting my own place and wanted to see if anyone has any advice about opening up a shop or wouldn't mind walking me through start-up process. Thanks!


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## smokinpoke (Apr 8, 2006)

have a lot of disposable income...my experiences have been (tried to start a cigar store) that banks don't like to finance start-up retail outlets.


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## BlueHavanaII (Feb 2, 2007)

bama said:


> Hey, everyone. I know a lot of you have cigar stores or at least know the ins and outs of starting a cigar shop. I am very interested in starting my own place and wanted to see if anyone has any advice about opening up a shop or wouldn't mind walking me through start-up process. Thanks!


I've been open 5 months now. 
Rule #1- Do a formal business plan, including all financials
Rule #2- Increase all start up costs by 50% of estimate
Rule #3- Decrease first years sales by 50% of estimate

I'll be glad to talk with you about my experiences. Give me a call at 678-867-2886.

Jim


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## c-poc (Sep 1, 2006)

I have heard that it is A LOT easier to buy an already established tobacco store than start-up a new one. That way you can keep all of the contacts and relationships with the distributors and have access the good ultra-premium smokes right away. Otherwise, starting from scratch, it takes a long time to be able to stock cigars like the Opus X and Anejos.... I might be wrong, but that is what I have heard from other posts.


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## LasciviousXXX (Oct 12, 2004)

There's actually quite a few threads floating around CS with TONS of great knowledge contained within them. Do a search and I'm sure you'll find lots of valuable info.


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## Hammerhead (Sep 7, 2005)

I'd take a look at what the political climate is, in terms of impending legislation related to smoking and taxes. Check the bills working their way through your state legislature, because if any of them "have legs" it might change what you do with your store. IOW, if you wanted to have a smoking lounge, and you have anti-smoking bills like NJ, it might shift your strategy.


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## Rploaded (Nov 7, 2006)

If your in it for a hobby go for it, if your trying to be profitable stick to online or being a distributor.......

Just my .02


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## bama (Jan 24, 2007)

Rploaded said:


> If your in it for a hobby go for it, if your trying to be profitable stick to online or being a distributor.......
> 
> Just my .02


Won't the issues re: stocking be the same if you're doing an online biz?

Also, what do y'all think about Tinder Box franchising? http://www.tinderboxinternational.com/p43.htm


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## stevieray (Sep 28, 2006)

bama said:


> Won't the issues re: stocking be the same if you're doing an online biz?
> 
> Also, what do y'all think about Tinder Box franchising? http://www.tinderboxinternational.com/p43.htm


I think what RPloaded is saying is that there would be less costs involved with online sales... ie: rent for storefront, and labor costs. Also you need to consider the Local and State excise taxes to be paid. Currently Illinois is at 18% of wholesale price. Some states are higher...some have none. There is alot of different factors. I would give the store owner a call that posted his number. Nobody better to talk to then somebody who's already been through it. Just my :2


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## emeraldsmoke (Oct 10, 2006)

Have Deep Ass pockets. Not trying to be a smart guy, but if you dont, it will very tough.


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## JPH (Jun 30, 2006)

A few suggestion from a X business owner:

1. Work it yourself....

2. Give CS members better deals on stuff and we will buy in quantity...

3. Stock humidity beads from viper and push them....believe it or not lot's of people don't even know they exist.....

4. Be honest with customers about sticks that you like and don't like...some shops will tell you they like everything....though taste is subjective sometimes I like to know if "you" liked it...you can't always say yes..annoying...

5. Be nice to the young customers....I'm 25...when I go in a new shop and there is an older guy working ...I don't get the respect I deserve..Little does he know I have coolers full of Cubans at home....Pricks......that really burns me up...I'm JPH Mother-fer....ah well.... 

6. Give away empty cigar boxes for free with purchase...charging a buck is ok....yet annoying...If someone is buying 2 sticks...10-14 bucks....give em some freaking boxes if they want...they'll come back for more...

7. No worker has ever asked me "want to have a smoke?".... Smoke with your customers...old AND NEW!!!!....some people are probably wanting to chill and have one right now...ask...it's a great way to establish customers and friends...which in your business should be one of the same.

Just some advice from a noobie....


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## LiteHedded (Apr 10, 2005)

yea I'm 25 too and people have an attitude sometimes


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## mastershogun (Nov 3, 2006)

just wanted to check in and see if there was any progress in your decision


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## bama (Jan 24, 2007)

mastershogun said:


> just wanted to check in and see if there was any progress in your decision


Progress, but at a snail's pace. I've been in communication with a gentleman whose shop is for sale. Also, I have begun to do research on a couple of cities in my home state (possible shop locations, market conditions, etc.). I have spoken with a shop owner on CS, who was kind and helpful.

I am wondering if I should look to buy a shop or start from scratch. Obviously, I would like my own shop, but I am concerned about the amount of time, effort, money it takes to develop accounts with high-end distributors.

Regardless, if I get a shop, I would like to either shadow an owner/manager for a week or so or invite him/her to my place to show me some Xs and Os for a few days.

This is not some pipe dream. I have wanted to do this for a long time, and I really want to see it through.

Maybe my shop could double as my law office. I could be like Ed, except that I would be a cigar shop lawyer, instead of a bowling alley lawyer!


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## Mr. Montecristo (Feb 4, 2007)

Anyone have any idea what the cost of opening one up is? Nothing too fancy, but not a shack either.


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## emeraldsmoke (Oct 10, 2006)

My 1st shop has taken about 600k. I expect stores 2 & 3 to take about 1 mill each.


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## ATLHARP (May 3, 2005)

JPH said:


> A few suggestion from a X business owner:
> 
> 1. Work it yourself....
> 
> ...


These are some great points. I just want to reply on a couple of them

4. This is completely correct. Cigar Shops exist off of reputation chiefly, not because of fantastic deals. People hit the shop because they like the people or the atmosphere or the din of a vacuum cleaner has driven them out of the house. When selling cigars: Be Honest! Your customers rely on you and your knowledge when they have very little experience with cigars. Like me, I have no problem saying Perdomos suck.:bn

5. Absolutely correct. I remember one time I had some thug looking kid come into the shop and he dropped about $300 before he left for cigars, a humi and a $75 lighter. My job as an employee is to try and make any customer who comes into the shop feel comfortable. Anyone that doesn't do that is either not doing their job or is a total POS.

7. Amen, the cigar business is the hospitality business. Whatever a customer wants, like a cup of coffee, soda, or maybe something from under the counter. It would be wise to let them have it. :al

People that come into a shop usually about 1 out of 5 times want to sit down and hang out. People need to unwind and the fact that they chose your 
place you should feel honored. Any established shop needs it's locals or group of guys who hang out there who chow down, watch sports, and drink to almost excess. The shop is a refuge more than it is a business.:2

ATL


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## ky toker (Jun 2, 2005)

ATLHARP said:


> 7. Amen, the cigar business is the hospitality business. ....People that come into a shop usually about 1 out of 5 times want to sit down and hang out. People need to unwind and the fact that they chose your place you should feel honored. *The shop is a refuge *more than it is a business.:2
> ATL


More great advice added to others.

A shop I like to go to when I find the time has changed for the better. The onwer bought the store next door, broke thru the wall and added a coffee/smoking lounge to his cigar shop. This is just great. I have been able to drop in on occasions and just sit down and have a cigar while talking to a couple of people who are no longer strangers.


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## Boston_Dude05 (Oct 10, 2006)

Yep, adding the smoking lounge that is nicely appointed would be huge, like comfy chairs, flat planel TVs, books, etc.. It's not just a shop IMHO, but also a place for people to hang out. Having good drinks, which you can sell, would be huge too like at the minimum at good coffee/expresso machine and if possible ports, single malts, etc. although that would certainly add costs.


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## dstaccone (Oct 19, 2006)

just read this post for the first time, I think I am going to print out some of the suggestions and give them to the owner of the b&m I occasionally work for. He doesn't do a bad job, but I think some of the tips may help him.


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## RapidTransit (Oct 7, 2006)

bama said:


> Hey, everyone. I know a lot of you have cigar stores or at least know the ins and outs of starting a cigar shop. I am very interested in starting my own place and wanted to see if anyone has any advice about opening up a shop or wouldn't mind walking me through start-up process. Thanks!


I can't help it but offer you some advice if you want to know the In's and Out's of the Cigar Biz... We've helped alot of people start up because instead of competeing with everyone we believe in helping the other shops.


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## Mr. Montecristo (Feb 4, 2007)

emeraldsmoke said:


> My 1st shop has taken about 600k. I expect stores 2 & 3 to take about 1 mill each.


How much did it cost to start up?


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## emeraldsmoke (Oct 10, 2006)

CigarFan said:


> How much did it cost to start up?


$350-k - $400-k


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## hyper_dermic (Dec 17, 2006)

from a smoker in his late 20's i have to re-iterate many of the issues already state.

#1 be good to your younger smokers. we are few and far in between, and there are less and less of us lately. but we are the future of the tobacco sub-culture, in 40 years WE will be the old dudes chopin stogies in the back of your shop.
some younger smokers already know alot about stogies, but the ones who are just getting into it need a helping hand.

suggestions are a great way to make them feel welcome. show them the cigars you think are way underated ($5-7 range) then suggest 1 high end cigar! this is how i was treated when i was starting out, and for that i have shown loyalty to my B&M. the owner treated me well, suggested a broad range of smokes he thought i would like, and not just cheap stuff either, he always threw in high end smokes so i could learn what they were like as well.
I hate it when i go to a shop, and the owner only suggests lower end cigars, thinkin i wont drop $20 on a smoke.
is it a pride thing? perhaps, but when i ask you what you think is a really good smoke, dont hold back just because it costs over $10.

#2 Selection of cigars. this is debatable, but the B&M i frequent carrys very few, if any sub-par sticks. basically i could walk in, blindly reach into a humidor and pull out a great smoke. there are no "so/so" cigars there. this may drive away those looking for a RyJ, or a Crapanudo, but this level of snobbery make me like the shop even more  (and when people do come in asking for a RyJ, the owner gently guides them towards a better cigar, and trys to educate the customer on how some cigars are mass produced etc...

#3 atmosphere, hard to create this one. part of it is how you treat customers, part of it is decor, and part of it is the following you get... the guys/gals hangin round your shop, they all become part of the atmosphere.
the worst shops ive been in were downright nasty, the best shops seem to pull people from all age groups, all economic situations, all races, etc.... when i visit my local shop, i see hispanic guys, an old italian, an indian, couple of white dudes, a couple of black dudes, all sitting around a table talking with each other. you rarely see that nowadays, but its quite refreshing. and it makes others feel very welcome, heck if all those guys can hang out here, i can too !

#4
Freebies.. once and a while throw a customer a freebie, or a discount.. (i feel the freebies are better... its ALWAYS nice to get a free stick)
after frequenting my local shop for a couple of months, i was gifted a Monte #2 Habano. 
Wow! to say the least! now thats a freebie!

#5 prices. this is a tough one.. and i dont claim to know anything about running a cigar shop, but i have seen all kinds of prices. and the B&M i frequent has very fair prices. if you go online and look up the price for a single, that is what the shop charges. doesnt matter if its rare, limited production or what. whatever the stated rate it, they sell for it. no price gouging. i respect that and when buying singles i feel no need to go online, because im getting just as good of a deal right here, and im supporting a local businessman.

So, based on all the above factors, i chose MY B&M. i drive approx 30min to get there, and i drive past maybe a dozen other cigar shops.

if i had to pick 2 reasons why ,
#1 would be selection. Hands down this is the most important for me. hes got AMAZING cigars. All the goodies not just fuentes and padrons, infact i dont think hes had a PAM in his shop for months, and i dont care, Pepins, Padillas, Olivas, all those little gems that people dont always think of, hes got em. I get really sick of stepping into a cigar shop and see nothing but the same old same old. CAO, Fuente, Padron, blah blah.. boring... 

#1 is how i am treated. I like to geek out about cigars, so if i can come in and talk to you about cigars for an hour, well then you have me sold!

well, i hope this helps, its just one persons perspective on how he chose a cigar shop where there are many to choose from.

-hyp


EDIT --- PS, SELL PIPES and PIPE TOBACCO!!!!!!
i just wish my BM sold that, i would be there much more often now


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## daviddunn (Sep 26, 2006)

Ditto, I have a very similar B&M, it makes a huge difference. Never forget that you should be friends with your customer. That's the difference between online, and B&M, I go to my B&M when I want to see my friends, and talk about cigars, even if it cost more.


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## RapidTransit (Oct 7, 2006)

There are alot of trade secrets that not many people know I can help you if you are seriously interested. That includes having the proper licenses and I'll help you build.


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## dfantjr (Apr 22, 2013)

I am new to the site and I too am in the early stages of research as I intend to open my own Cigar shop. I would definitely be all ears with any info you are willing to share that would help in the inaugural year of existence.

Thanks


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## Fuzzy (Jun 19, 2011)

I just have to wonder if th OP actually ever opened the cigar store??? It has been five years since the original post and there are only 71 posts.


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